How Much Does the Public Know about the ECB's Monetary Policy? Evidence from a Survey of Dutch Households

47 Pages Posted: 11 Nov 2010

See all articles by Carin van der Cruijsen

Carin van der Cruijsen

De Nederlandsche Bank

David-Jan Jansen

De Nederlandsche Bank

Jakob de Haan

University of Groningen - Faculty of Economics and Business; De Nederlandsche Bank; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: November 2, 2010

Abstract

Does the general public know what central banks do? Is this kind of knowledge relevant? Using a survey of Dutch households, we investigate these questions for the case of the European Central Bank (ECB). Our findings suggest that knowledge on the ECB's objectives is far from perfect. Both a weak desire to be informed and unawareness of insufficient knowledge are barriers for improving the public's understanding of monetary policy. However, our results also show that more intensive use of information improves understanding, suggesting that the media channel may play an important and constructive role in building knowledge. Finally, we find that knowledge on monetary policy objectives contributes to an individual's ability to form realistic inflation expectations.

Keywords: monetary policy, knowledge, transparency, financial literacy, inflation expectations, ECB

JEL Classification: D12, D84, E52, E58

Suggested Citation

van der Cruijsen, Carin and Jansen, David-Jan and de Haan, Jakob, How Much Does the Public Know about the ECB's Monetary Policy? Evidence from a Survey of Dutch Households (November 2, 2010). ECB Working Paper No. 1265. Available at SSRN: https://ssrn.com/abstract=1701609

Carin van der Cruijsen

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

HOME PAGE: http://www.dnb.nl/en/onderzoek-2/onderzoekers/overzicht-persoonlijke-paginas/index.jsp

David-Jan Jansen

De Nederlandsche Bank ( email )

P.O. Box 98
1000 AB Amsterdam
Netherlands

HOME PAGE: http://sites.google.com/site/djansenresearch

Jakob de Haan (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

PO Box 800
Groningen, 9700 AV
Netherlands
+31 0 50 3633706 (Fax)

De Nederlandsche Bank ( email )

P.O. Box 98
Amsterdam, 1000 AB
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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